Non Payday Loans for Bad Credit

People avoid payday loans for one of two reasons:
A) they don’t have a regular paycheck, so they can’t get one anyway.
B) they despise the sky-high interest rates that are attached to them.

If you have poor credit and are looking for a loan that is NOT a payday loan, here are a couple of options that you might not know about.

Peer-to-peer loans

In our increasingly globalized world, this is an exciting new development that has come onto the scene with the growth of the Internet. People with bad credit that are hunting for non payday loans have found a reasonable amount of success with this option.

Basically, you go online and state your case for a loan at any number of available sites, all of which have sprung up since just 2005. Interest rates start as low as 6.5% and average around 10.5%, which means that your chances of getting a good rate are excellent if you can persuade someone in cyberspace that you are a good risk. Most of the lenders do check credit scores, but if you state your case in a reasoned way and are able to win someone’s sympathy, you can get the money that you need at a rate which you can actually repay.

Borrowers are finding that it’s much more dignified to appeal to actual human beings online than to bump up against faceless bank guidelines. Have someone look over your appeal before posting it. Think about what you would want to read if the roles were reversed, which they might be someday!
Among the peer-to-peer sites are Prosper, Lending Club, Peerform, GreenNote and People Capital.

Loans from family or friends

Sure, this can be really hard to do. It requires you to swallow your pride and ask a favor. However, if you get the money that you need, you will feel much better than if you walk out of 10 banks with the door banging shut behind you.

It helps if you spell out exactly what you need and what you need it for, even when approaching a friend. Treat the transaction as a legal one, with proper documentation, and your friend will be much more open to lending to you. Again, as noted above, the roles might be reversed someday, and many people understand that possibility and are more open to help friends out in these very difficult economic times.

In your written agreement, note the interest rate, payment terms, collateral and what will occur if you fail to repay the debt. Several online sites can spit out such documents free of charge for you. Tapping a friend that currently has more resources than you can be a great way to grab a non payday loans with bad credit. Just be sure that you can repay the loan, or you might lose a friendship and end up in a very poor financial state.